After Bengal protests, Council sticks to 28% GST on online gaming & casinos

Kolkata: State Finance minister Chandrima Bhattacharya said on Thursday that Bengal’s vehement protest has contributed to the GST Council sticking to its decision of levying 28 per cent GST on online gaming and casinos on the face value of bets at entry level amidst three states — Delhi, Goa and Sikkim — expressing dissent.

The 51st GST Council meeting was chaired by the Union Finance minister on Wednesday, which was attended virtually by Bhattacharya along with representatives of all states.

“I argued that online gaming has always been an actionable claim in the nature of betting and gambling considering its social impact and so it should not be made free. We have come across several instances of addiction to online gaming particularly among the children,” Bhattacharya said at the state Assembly during discussion over the West Bengal Goods and Services Tax (Amendment) Bill, 2023.

She further contended that in the last GST Council meeting held in July, it had unanimously decided to impose 28 per cent tax on online gaming, casino and horse racing etc. “The chapter that was closed in the earlier meeting should not come up in the next one which was meant to deliberate on the tax law changes that would be required to implement the same,” she argued.

She also maintained that soon after Bengal raised its voice, representatives from a number of BJP-ruled states, including Uttar Pradesh, supported her and Union Finance minister Nirmala Sitharaman made it clear that 28 per cent GST on online gaming and casinos will be effective from October 1.

Bhattacharya, while tabling the Bill, said amendment in the Bill is meant at providing relief to the taxpayers, especially micro and small entrepreneurs and traders and to decriminalise certain offences committed by taxpayers on the recommendations of the GST Council. The Council has already approved such amendments and it needs to be implemented through an amendment.

“An aggrieved GST payer has to move the high court seeking redressal. Now, with the passing of the Bill, we are developing appellate tribunal where an aggrieved person can seek legal recourse. Two such benches will be created in Kolkata,” she added.

It will also rationalise the amount for compounding of various offences by reducing the minimum as well as maximum amount of compounding.